ECB Cuts Rates

11/7/2013 10:56AM

The European Central Bank, spooked by plummeting inflation in the euro zone, cut its main rate to 0.25%, just a whisper above zero. Katie Martin assesses the ECB’s move and whether it will have the desired effect.

This transcript has been automatically generated and may not be 100% accurate.

I ... here are a social bank unexpectedly cut interest rates today they are getting closer and closer to closer to the magic zero market down a quarter of the percentage points to ... a quarter percentage point on the main refinancing rate ... the euro fell stocks in Europe soared ... in the near tragedy CDS president has resisted making them much ... movement at all really in the bank's rates for a period of time over the summer ... and the fall and things are common complacent in the euro zone but what has changed Kmart is making the Y today ... aam what in the CBC cause them to ... well the ... thing that was the inflation numbers last week they were horrible and the Wheldon NPC piece of the range and say what the talk of Apple said the mock it's up to pricing in some sort of move on writes about points ... but it wasn't for the price in which is why exactly she say euro dollar shed two cents on the news thanks to a new all-time high as data stop you also had a rise in stocks across the euro area ... is haven't been fully priced in the mock happen for PCs coming ... I knew ... that what ... the question around when he was aiming this at the current say ... that he did this I leaks the strong euro is a specific downside he said try disabling don't really pay much attention to that but ... one of the really big ... thing that's it yet ... but with a lot of analysts up the saying that he did even if this was that a specific target this is definitely a happy byproduct of what happens to the uncertainty of what the euro rise too much inflation and deflation could become more of a concern and you can have additional concerns about restarting the economy it's Achillion countries like Spain and they're trying to get an export led growth and that ... comes in part because of the high currency and an inch or so ... what exactly I mean he was at pains to say that the vehicles us and the French but he does say a prolonged period of low inflation ... so authentic amass to kind of get use to tap the third time in as you say having a weak euro Sunday when hubs ... with that at the region the scope of the most thoughtful from firms that still put a fragile recovery assignment Danny Hong ... Gil what what is is it that it is a problem and I suppose one of the reasons why the delay doing this for so long is that ... you get down to zero point two five percent that isn't a lot more range doesn't have to be careful when you no good either way it's been for the freezing with what he is the likely stood next that if they feel like things are going great if there is some other Canon one D are disinflationary shot ... what will make do with it ... the kitchen sink at this and that there with all the whatever it takes five years and owns with what we come onto policy ... we also kind of extension in the way that the show the weight and ... the IV Chris and that is kind of role advisor with ... a condom idle the cosmos there but the Mac done everything bookmaking next to the dentist and have since the fall of power as the Fed for example when a constrained by the ... Germans in and they certainly aren't looking to teach me something more dramatic so we guess we just have to sort of way say ... and will be watching